Disney plans to spend $1B on theme parks after profit falls

New 'Star Wars' Trilogy in Works With Rian Johnson, TV Series Also Coming to Disney Streaming Service

Earlier this year, Disney said it would stop sending new movie releases to Netflix, its soon-to-be streaming rival, in 2019. (NASDAQ:NFLX), which will grow even bigger by then, will be a major threat to it. Disney CEO Bob Iger, talking about the company's strategy to make the service popular, confirmed that Disney will price its subscription-based service "substantially" lower than Netflix.

The earnings call also coincided with news that The Last Jedi director Rian Johnson is to produce an entirely new Star Wars trilogy, as well as write and direct ots first instalment.

"We also believe that our brands and our franchises really matter, as we've seen through Netflix and all other platforms".

Generating confidence in the future is critical for Disney as it is coming off a comparatively weak fiscal year for its movie and consumer-products units and more declines in its television business. At this time we do not know what time period the show will be set in.

According to The Wrap, Disney CEO Bob Iger says "Our plan on the Disney side is to price this substantially below where Netflix is", which now charges between $7.99 and $13.99 a month in the USA, and between £7.49 - £8.99 in the UK.

Both shows will be exclusive to the new streaming service Disney is preparing to launch, putting them in competition with Netflix, Hulu, Amazon, and others. The shares are down 1.5 percent this year after a flat 2016, the worst back-to-back years since 2007-2008.

Disney's ESPN witnessed higher programming costs, lower advertising revenue were offset by higher affiliate revenue. Segment operating income dropped 12% to US$1.5 billion.

It's unclear how this will affect DisneyLife, Disney's own subscription service in the United Kingdom - where you cannot only watch the studio's movies and TV shows on demand and streamed to phones, tablets, computers, and TVs, as well as gain access to an extensive library of eBooks, audio books, and music.

This disclosure came on its earnings call to wrap up the company's fiscal year that closed September 30.

A series based on the Pixar film franchise, Monsters, Inc. Although profit rose, Hurricane Irma forced Disney to close its four Orlando, Florida, parks for two days and cancel three cruises.

The earnings report comes amid Disney's alleged negotiations with Fox to acquire some of its entertainment assets.

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